Topic: The first rule of investing is saving - page 3. (Read 1839 times)

It doesn't matter how large or small your investment is as long as you're satisfied with your return on your investment. It's true that not everyone has the means to invest large amounts of money; therefore, small profits are a blessing because they can be accumulated over time and result in substantial earnings. If you have the ability to invest large amounts of money, your return will be significantly higher if you do not lose your money.

At first I won't believe it but it really is tax free. That's what it says after I search it. It's a nice hack then that rich peeps are doing. Now I don't wonder why many rich people have that mindset. They take loans even if they are already rich but not only rich people are taking loans, poor people do it too although most poor people that take loans are a failure and will end up became more poor because they have a debt to pay.

I think before we start something risky like loaning a money, better if we learn first how to handle/manage money. The story you said above are inspiring and we can obtain a few lessons to it like being patient and value jobs because it's more stable.

Depends on the investment, and the amount of money you have. When you have cash, it is better to invest into real estate, because it pays itself off and you would be getting richer with someone else’s money.

Getting a mortgage at a good interest rate, buying a house, remodelling it, then renting it out means that by the time your 20 year loan ends, your house would worth a lot more than the loan itself, meaning you took out money that isn't yours, and used it for something and paid it back with money left in your pocket. However, in crypto there isn't an option like that since we do not know if bitcoin will be 10k or 100k tomorrow, hence the risk, we know houses will be valued higher, that is not guaranteed in bitcoins situation.

Many people think too long about security so they continue to delay investment, the thing we have to understand is that all types of investment have risks, the higher the risk the higher the chance of profit, and for security, of course the best thing is we have full control and can sell at any time Without fear of no buyer.

The most important thing of investment is security, and in my opinion security is that we can control completely without dependence, crypto systems are designed for security and of course full control.

It is also better to invest but not with all the savings, but sometimes we tend to forget he risk involved in some of the investments we get into, i also understand that the motive behind every investment is to make profit but greediness to make much higher profits than expected makes some fall in the hands of scammers, one has to be careful and observant on what they invest on, some Investment don't even really worth it, just a show case to waste of time and resources. It's always good to learn from people's experience and not from our mistakes.

Yes always need to invest larger money where can we get no tension on my hidden this money need which is unused cause money any time can destroy so we need big unused money.

If we invest with a large nominal of course the most important thing is saving, but if we only use a little money then the most important thing is the hope for big profits, crypto is a type of investment that is high risk, price increases and decreases can occur tens of percent per day, the most important thing before Getting into crypto is understanding the risks.

Savings does have different roles;

1. Used in investment
2. Back funds for emergencies
3. Planning for future asset purchases

We should really be obliging ourselves on having savings so that you would really be able
to have some chances on buying back or involvement if you do see opportunities.

Yes, we all know that investing is saving, but where to get the capital to invest is the problem. Investment as a business is a risk. When you borrow money from someone and you use it for investment. Do not forget that you might lose two ways. The capital or the profit. Now you borrow and use it for investment. But at the end you did not make profit that is the first lose. And then you used the capital to invest and the you lose the capital in the process of the investment, that is the second lose so when investing you have to calculate the both to understand what you want to do before entering into it.

As it is said, for one to save you must invest. Yes "investment is a way of saving". Even human life is an investment. Because for one to save his or her life, he or she has to invest to save. There are many ways one can invest. Examples: Education, business and job.
Education: one can invest through education by learning what you don't know. Both in YouTube and articles. In this forum most people were ignorant of bitcoin and Crypto Currencies but as they came here, they have learned a lot of things about Crypto Currencies and bitcoin. The best example is me.  And that is you are Investing on knowledge. How can one trade without knowing the starting point and the ending point.  Then the second one is Business which is the OP topic of concern. For you to save, you have to invest. Now you can buy BTC and sell instant to make profit. Or you can buy and keep for future sale when the price has gone up. But as it is said, there is risk for the both.

There are two options in that case, which I have not really successfully done in my life, have been trying it for the past 6 years and it has been decent but not really what I calculated. First step is to lower your costs to the bare minimum, this means if you have to live in a tiny studio room then you do, if you need to eat ramen or potato for the whole month then you do, if you smoke then quit, if you drink then you stop.

Basically live a life of absolute colourlessness and hate your life for 6 months to a year if you have to, do not even live, just "survive" and you will be cutting the costs a lot. Secondly you try to find extra work, you longer do anything fun anyway, you just go to work, come home, eat raiment and sleep, so why not take up another job instead? That would gain you some more profit. I have failed this of course, saying is easy, but doing it is very very very hard.

Besides not always being profitable, investment is also not an easy thing, so you need preparation before starting.
it's better to use cold money to invest and of course it's to minimize risk,
The most important thing is to understand first about anything that is related to investment

I don't think you made a mistake in investing your money, but you just made the wrong choice of assets to invest in. Those are two different things in my opinion.

For most of the time, I think investment strategies should also be useful to implement such as maintaining DCA as well as asset diversification. Of course, this provides an opportunity for investors to profit while considering post-purchase price corrections so that they can make a second purchase when the price is lower than the first purchase. In addition, of course you must have sufficient knowledge to choose potential assets for your investment, especially if you want to do it in the long term.

Investment is not always profitable so in addition to needing backup savings, we should only invest with idle money cannot borrow to invest. The savings must always be larger than the investment so that we can easily respond in time when there are wrong investments. Saving is not only good for investment but also good for everyday things, in life sometimes we need to deal with unexpected work, so saving is essential.

You did well in this thread.  "The first rule of investment is saving"

I made the mistake two years ago and I used all my savings for investment, the investment went wrong and I returned to square zero.
I cannot make such mistakes again. I must first save and see that I have huge savings and then I can decide to use a little percentage of my savings for investment. And then, I cannot invest in something I know nothing about. That is my greatest rule of investment.

I really agree with your opinion, friend, if we don't have money, it's impossible for us to invest, the name of which is investment, there must be a certain risk, in fact, whatever we do, there will definitely be risks, let alone to invest in planting corn too. of course there are risks, but for now I am still loyal to investing in bitcoin.

Of course you need to save first before you can start investing. Having no money makes if almost impossible to generate any wealth out of it. There are two options starting with no funds, first is going for high risk investment and hoping to make a decent profit. Unfortunately many high risk projects will just make you lose your money. The second option is to borrow money to invest it. That's not a great strategy either, because when you lose some of it you still have to repay the loan. Best is to save first and invest later. What I find very hilarious is that many of these self help gurus with their financial independence books only become rich by selling the books. And for the people it would probably better to save the 20$ instead of buying another book. In today's world we need capital to make a profit.

There's no difference between "now" and "then". People always want to get rich quick. And if they don't follow some common sense/basic rules, they can too easy end up broke.
So while your conclusion is correct, the first sentence is odd..



No, just no. The fact you lack cash means that if you get a loan to invest and the investment goes bad (i.e. bitcoin price falls greatly for longer term), you will have no means to pay back, making your life (even more) miserable. If you go on this path you will also have no means to wait until the investment price gets back on profit (which, in case of Bitcoin did always happen until now, sooner or later).
PS. You should improve your writing style, it's hart to read/understand.

It is still best not to borrow. The market is still and other opportunities will come, so there is no need to rush to borrow to invest. Investing is risky so always plan for the long term rather than speculate.

I think we should have a savings first rather than an investment first, when we use our idle money to invest, our psyche will be more comfortable and will make the right decisions than when we are pressured to make the wrong decisions.

Its not bad if you're confident that you can repay your loan regardless of the outcome of your investment. Because every investment has risk and there's no assurance that we'll gain from it hence I think its best to have less expectation and dont rely on it. Thus if ever you will need to borrow money in order to invest, having a real job is an advantage, this is to ensure you can repay your borrowed money.

Nevertheless its still not advisable to take loan. Use your own money to invest, less worries incase something went wrong.